A variety of offers from different builders can make comparison difficult. “Concentrate on offers that adds to the value of the property and / or reduces its cost of acquisition,” says Anuj Puri, Chairman, Anarock Property Consultants. “To compare offers by different builders, use the criteria of ‘how much is the net reduction in payment and bring it down to just one number,” says Shishir Baijal, CMD, Knight Frank India.
To arrive at the actual impact in just one number, you need to see how each of these offers work. For instance, offers like waiver of stamp duty, registration charges, GST, etc are straightforward savings that can be calculated easily. Free car parking, waiver of floor rise charges, etc can also result in significant saving and will be applicable for all.
The next round of freebies like modular kitchen, air-conditioner, furnishings, etc will be of use only to some people. Further, the brands or quality offered by builders may not be of your choice. So, if the stuff offered is not what you like, try bargaining for a lower price.
Similarly, the external offers like car, gold coin, vacation, etc will be of use to a very small section. Assured rent free accommodation till possession may be of some use to those who are living on rent and not to someone who is staying in his own house.
Be careful with flexible payment options like book with small amount (5%, 10%, etc) and pay the balance at possession, etc. It is fine if this offer is coming directly from the builder and not through another funding agency. “Homebuyers should check with funding agencies directly to understand its actual impact on them,” says Samantak Das, Executive Director and Head of Research, Real Estate Intelligence Services, JLL India.
Offers to give housing loan at lower interest, no EMI for the next few years, etc are the other common offers. In this case, the funding agency is not giving you a loan at a lower rate. “Buyers should ensure that builders have the ability and willingness to pay the promised interest. It is better if builders are paying the subvention portion upfront and not at a later date. Any default by the builder will impact the credit rating of homebuyers,” says Renu Sud Karnad, MD, HDFC.